Mylan to Buy Famy Care Women’s Health Units for $800 MillionTom Lavell and Ketaki Gokhale
Mylan Inc. agreed to buy some women’s health-care businesses from Indian partner Famy Care Ltd. for as much as $800 million as the U.S. generic-drug maker expands in supplying contraceptives in emerging markets.
The transaction will cost $750 million in cash plus additional payments of as much as $50 million, Canonsburg, Pennsylvania-based Mylan said today in a statement. The companies intend to complete the deal in the second half of this year.
Mylan agreed last year to acquire European assets from Abbott Laboratories and adopt a Dutch legal address, lowering its corporate tax rate. The purchase of units from Mumbai-based Famy Care will complement the Abbott deal, Mylan said today.
“With today’s acquisition, we are building on this successful partnership and further accelerating our global growth in this important therapeutic area” of women’s health care, Mylan Chief Executive Officer Heather Bresch said in the statement.
Famy Care offers women’s products including oral and injectable contraceptives, intra-uterine devices or IUDs, and hormone-replacement therapies. It is the world’s largest producer of generic oral contraceptive pills.
A partnership with Mylan that began in 2008 enabled Famy Care, which had focused on developing countries, to start getting products approved for the U.S. market. The companies agreed to develop and supply 22 oral contraceptive products in the U.S.
Famy Care has manufacturing facilities in Ahmedabad, Sarigam, Daman and Aurangabad. The company has U.S. Food and Drug Administration approval to make copies of oral contraceptives including Merck & Co.’s Desogen.
Famy Care was founded by J.P. Taparia in 1990 in Mumbai. Hong Kong-based AIF Capital invested 1.75 billion rupees ($28 million) in the company in April 2010.